Rumor: China Telecom to Establish Cloud Computing Subsidiary
CCID, 2/13/12
A source close to China Telecom (NYSE: CHA; 0728.HK) revealed recently that the operator is preparing to establish a cloud computing subsidiary to oversee cloud computing services at China Telecom's municipal and provincial-level subsidiaries. The new subsidiary will reportedly begin operations in April. Majority consensus has reportedly yet to be reached within the operator on a number of questions related to the cloud computing subsidiary - particularly questions of how it will be positioned, how it will be operated, and how it will relate to other divisions of China Telecom. The source said that it could be confirmed at present that the new cloud computing company will oversee local subsidiaries' cloud computing services and provide infrastructure-as-a-service (IaaS) services for clients.
The first round of hardware, including servers and storage equipment, has already been installed, and work on a cloud data center management platform developed by China Telecom's Beijing Research Institute has reportedly entered the final stretch. China Telecom opted to develop its own cloud data center management platform owing to compatibility concerns, as different provincial subsidiaries currently use equipment and management software proprietary to different manufacturers. The first batch of cloud data centers will comprise five major IDC nodes in Shanghai, Guangzhou, Chengdu, Hong Kong, and Xi'an. Under the operator's current timetable, management platform testing will move from lab testing to the five IDC nodes in March, and will continue for two months. The cloud management platform will be officially opened to the public in May should testing prove successful.
Keywords: Internet data center China Telecom telecom cloud computing 0728.HK CHA Infrastructure as a Service
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